PPT Working Paper No.

Practical strategies for pro-poor tourism,

Wilderness Safaris South Africa:
Rocktail Bay and Ndumu Lodge.

Clive Poultney and Anna Spenceley

April 2001
 Preface
This case study was written as a contribution to a project on ‘pro-poor tourism strategies.’ The pro-poor tourism project
is collaborative research involving the Overseas Development Institute (ODI), the International Institute for the
Environment and Development (IIED), the Centre for Responsible Tourism at the University of Greenwich (CRT),
together with in-country case study collaborators. It is funded by the Economic and Social Research Unit (ESCOR) of
the UK Department for International Development (DFID).

The project reviewed the experience of pro-poor tourism strategies based on six commissioned case studies. The case
studies used a common methodology developed within this project. The case study work was undertaken mainly
between September and December 2000. Findings have been synthesised into a research report and a policy briefing,
while the 6 case studies are all available as Working Papers. The outputs of the project are:

Pro-poor tourism strategies: Making tourism work for the poor. Pro-poor Tourism Report No 1. (60pp) by Caroline
Ashley, Dilys Roe and Harold Goodwin, April 2001.

Pro-poor tourism: Expanding opportunities for the poor. PPT Policy Briefing No 1. (4pp). By Caroline Ashley,
Harold Goodwin and Dilys Roe, April 2001.

Pro poor Tourism Working Papers:

No 1 Practical strategies for pro-poor tourism, Wilderness Safaris South Africa: Rocktail Bay and Ndumu Lodge.
Clive Poultney and Anna Spenceley
No 2 Practical strategies for pro-poor tourism. Case studies of Makuleke and Manyeleti tourism initiatives: South
Africa. Karin Mahony and Jurgens Van Zyl
No 3 Practical strategies for pro-poor tourism. Case study of pro-poor tourism and SNV in Humla District, West
Nepal. Naomi M. Saville
No 4 Practical strategies for pro-poor tourism: NACOBTA the Namibian case study. Nepeti Nicanor
No 5 UCOTA – The Uganda Community Tourism Association: a comparison with NACOBTA. Elissa Williams,
Alison White and Anna Spenceley
No 6 Practical strategies for pro-poor tourism. Tropic Ecological Adventures – Ecuador. Scott Braman and
Fundación Acción Amazonia
No 7 Practical strategies for pro-poor tourism: a case study of the St. Lucia Heritage Tourism Programme. Yves
Renard
No 8 Pro-poor tourism initiatives in developing countries: analysis of secondary case studies. Xavier Cattarinich.

All of the reports are available on our website at:

http://www.propoortourism.org.uk.

© CRT, IIED and ODI, 2001

Readers are encouraged to quote or reproduce material from this working paper, but as copyright holders CRT, IIED
and ODI request due acknowledgement.
 Acknowledgements

The authors gratefully acknowledge the support of the UK Department for International Development (DFID) in funding
this work. DFID supports policies, programmes and projects to promote international development. It provided funds for
this study as part of that objective, but the views and opinions expressed here are those of the authors alone.

The study was conducted under the auspices of the CRT, IIED and ODI, with editing and advisory inputs from Caroline
Ashley (ODI).

Thanks are also due to the many staff, community members and organisations who took the time to participate in this
study.

About the authors

Clive Poultney works with Wilderness Safaris, Maputaland, and the Institute of Natural Resources. He may be
contacted at

Private Bag X 546

Mkuze 3965
Maputaland
South Africa

Email: Ntuntane@iafrica.com or Nsinbi@iafrica.com

Anna Spenceley is a Research Associate at the Institute of Natural Resources. She may be contacted at:

Private Bag X01

Scottsville
3209 South Africa

Tel + 27 33 3450796
Fax + 27 33 3460895
Email Spenceleya@nu.ac.za or A_spenceley@hotmail.com

Website: www.inr.unp.ac.za
Acronyms

DEA&T South African Dept of Environmental Affairs and Tourism

DFID UK Department for International Development
GSLWP Greater St :Lucia Wetland Park
KZN KwaZulu Natal
KZNNCS KwaZulu Natal Nature Conservation Services
KBNR KwaZulu Bureau of Natural Resources
KZNTA KwaZulu Natal Tourism Authority
SATI South African Tourism Institute
SATOUR South African Tourism (marketing arm of the Government)
SDI Spatial Development Initiative
SMME Small, medium and micro enterprises
TEP Tourism Enterprise Programme
TFCA Transfrontier Conservation Area
WS Wilderness Safaris
Contents
1. Overview 1
1.1 The area and context 1
1.2 Background and details of the PPT initiative 3

2. Pro-Poor Focus 7
2.1 Assessment of broad pro-poor tourism strategies 8
2.2 Specific actions to involve poor people in tourism 11

3. Results and Impacts 15

3.1 Progress and challenges 15
3.2 Relevance to the poor and poverty reduction 17

4. Review and Lessons 31

4.1 Reflections on this PPT initiative 31
4.2 Reflections on the PPT research 32

References 34

Appendices
1 Methodology 36
2 Types of tourists 36
3 Policy context in which the initiative is taking place 37
4 Pro-poor government policies with respect to tourism 41
5 Example of a community-based project – Kosi Bay 42
6 Comments on the research 43
7 Maps of the area 44

Figures, boxes and tables

Figure 1 Schematic of the partnership arrangement 4

Box 1 Origins of Wilderness Safaris’ pro-poor strategy 7

Box 2 Extract from ‘A Strategy for Tourism in KwaZulu Natal (2000)' 37

Table 1 Actions to address barriers to participation of the poor in tourism, Rocktail Bay 11
Table 2 Actions to address barriers to participation of the poor in tourism, Ndumu Lodge 13
Table 3 Financial earnings of the poor, Rocktail Bay 18
Table 4 Spending by the Mqobela Trust 20
Table 5 Financial earnings of the poor, Ndumu Lodge 21
Table 6 Positive and negative impacts on livelihoods of the poor, Rocktail Bay 25
Table 7 Positive and negative impacts on livelihoods of the poor, Ndumu Lodge 27
1

1. Overview

This paper reviews the Maputaland operations of Wilderness Safaris (WS), a Southern African tour
operator. In particular it focuses on two lodges run by WS, which are tri-partite ventures between
the company, local communities and the provincial government’s conservation authority. The main
pro-poor element of WS’s strategy is its contractual relationship with the community and the
conservation authority in a Lodge Operating Company. A separate partnership exists between the
conservation authority, a financing body and the local community in the Lodge Owning Company.
This partnership arrangement differs from standard practice in the region whereby a private lodge is
built on private land, or is operated within a game reserve on land leased from the conservation
authority. This paper reviews the strategies and challenges faced by the company, and details the
financial and livelihood impacts experienced by the community so far.

1.1 The area and context

The case study site is located in Maputaland, in the north-eastern portion of the KwaZulu Natal
province of South Africa. The two WS operations studied in this assessment are Ndumu Lodge and
Rocktail Bay Lodge. Ndumu Lodge is situated in the Ndumu Game Reserve on the border with
Mozambique, while Rocktail Bay Lodge lies in the coastal forest reserve on the Indian Ocean
shoreline. The area falls under the Lubombo Spatial Development Initiative (SDI)1, a regional
development programme oriented to the growth of tourism. SDIs aim to promote industrial,
commercial and tertiary sector activities, with knock-on employment opportunities. SDIs are often
located in areas with abundant natural resources but with limited infrastructure as well as
widespread poverty and weak institutional capacity to manage development sustainably (DEA&T,
1999).

Maputaland is a growing tourist destination (see Annex 2). Tourism segments include coastal
tourism (e.g. beach, scuba diving, snorkelling, and fishing) and photographic safari tourism in ‘Big
5’ reserves. Accommodation facilities range from luxury wilderness lodges (characterised by WS
and Conservation Corporation operations), through guest houses and self-catering chalets (e.g.
provided by KwaZulu-Natal Nature Conservation Services (KZNNCS)), to backpackers’ sites,
rustic bush camps and camping. The area offers a diverse range of habitat and wildlife for various
levels of the tourism market. WS provides exclusive up-market facilities for tourists who would fall
into SATOUR category B (around SAR 1181 equivalent to $150 per person, per night).

The Greater St Lucia Wetland Park (GSLWP), which also lies within the Lubombo SDI, has
recently been awarded World Heritage Site status. This designation has given the region a much
needed publicity boost since it is under pressure to generate revenue through nature-based tourism.
In its recent history, Richards Bay Minerals lobbied the government to allow part mining of the
coastal dunes for heavy metals. Following a protracted dispute with the conservation lobby and the
most expensive Environmental Impact Assessment ever undertaken in the country, the new South
African government ruled against mining and designated the Wetlands for conservation and
tourism; the long-term financial and conservation benefits from tourism outweighed the predicted
revenue and cost of environmental degradation from mining. Fourteen tourism concession sites

1
The South African government has adopted the concept of Corridor Development, called Spatial Development Initiatives (SDIs) “ .
. .as a tool for creating an outward oriented and internationally competitive economy in the region. The SDIs form part of the South
African government's Growth Employment and Redistribution (GEAR) programme, a macro-economic strategy, aimed at revamping
the inefficiencies and inequities of the economic system that developed during the apartheid era. They are also designed to link into
strategies for economic growth adopted by South Africa's neighbours in the region.”{Mafisa SDI Appraisal, March 1997}
 2

within the GSWLP are currently for tender, and are due to be granted in August 2001. SAR2 630
million (US$ 80.2 million) is being spent on regional support networks, park infrastructure, game
reintroduction, and a malaria eradication drive (SDI Technical Team, 2000, Lubombo SDI Investor
Launch Dec. 1999).

1.1.1 Policy context

The general policy environment is in a state of flux, with new legislation and strategies being
introduced to encourage tourism. However, there is an impression that remnants of the previous
provincial bureaucracy do not welcome change, and in some cases may even be actively obstructing
it. Both the WS lodges are located in designated conservation areas where KZNNCS, as the
conservation authority, appears to be in disarray. There is the impression that a number of the old
guard conservators in the KZNNCS do not support initiatives which involve either communities
situated on the periphery of their parks, or the private sector which is being encouraged to assume
the hospitality component of game reserves. Currently there is a restructuring underway where many
people within KZNNCS stand to lose their jobs; this crisis is compounded by a substantial cut in the
operating budget of the authority, (Pers. comm. NCS Board member, 2000). The KZNNCS is now
under pressure to generate revenue from core profits, but it appears that it is neither geared towards
the demands of restructuring, nor towards operating in partnership with the private sector or
communities.

In order to assist changes, the Department of Environmental Affairs and Tourism (DEA&T) has
created a new combined conservation and tourism Heritage Authority for part of the region, which
falls under the GSLWP. This effectively places the World Heritage Site under the overall
management of a national competence, and leaves KZNNCS to play an executive implementing
function.

The WS initiative is caught in the middle of the administrative crisis, and does not feel it is
receiving support from the conservation authority for its initiative, despite the fact that an arm of
KZNNCS is a partner.

Attitude of government to tourism

The central and provincial governments’ attitudes to tourism in the region are positive but naïve.
Initiatives such as the Lubombo SDI and the GSWLP, together with the tourism and conservation
value of its natural assets, means that the region has the potential to take off as a global tourist
destination. However, conflicts between the conservation authority communities, and the private
sector act as a major disincentive to investors. The government has also underestimated the risk to
the private sector associated with operating in areas which suffer a lack of infrastructure and a
prevalence of malaria and criminal activity (see Annex 3).

Pro-poor policies in general, and specifically within tourism

The government does not have pro-poor policies in place as defined by DFID (‘tourism that
generates net benefits for the poor’ (DFID, 1999)) but rather hopes that the poor will benefit

2
$1 = SAR 7.85 (South African Rand)
3

indirectly through government initiatives such as SDIs which attract major investment into the
region (see Annexes 3 and 4).

Organisations influential in tourism development

There are a number of organisations which attempt to influence tourism development. These include
the SDI Technical Team, the national tourism authority, SATOUR, the provincial KwaZulu Natal
Tourism Authority, and regional services councils. National and provincial government departments
also have some input into planning tourism development, including the departments of Finance;
Public Works; Transport, Trade and Industry; Arts, Culture, Science and Technology; Labour;
Education; Home Affairs, and Foreign Affairs. These parties are sometimes in conflict with each
other, particularly since some are regional, some are provincial and others are national
organisations. Although there is continual reference to the government function of creating an
enabling environment for private sector investment, this is seldom occurs.

1.2 Background and details of the PPT initiative

The PPT initiatives studied here are WS Maputaland operations comprising two lodges, one at
Rocktail Bay and the other within Ndumu Game Reserve. These initiatives fall within WS’s broader
tourism development strategy aimed at enhancing WS lodge operations in the region and developing
the area as a tourist destination. The pro-poor element and the focus of this study is the partnership
with neighbouring poor communities, formalised through a contractual relationship in the Lodge
Owning and Operating companies.

During the mid-1980s WS sought to complement its Southern Africa operations in countries like
Botswana and Zimbabwe with lodge operations in South Africa. The first choice was to develop
tourism in Mkuze Game Reserve, with a second option of Ndumu Game Reserve. After lengthy
deliberations the KwaZulu Bureau of Natural Resources (KBNR – since amalgamated with Natal
Parks Board to form KZNNCS) offered WS Rocktail Bay; a fishing camp built in the coastal dune
forest. WS accepted the concession on condition that a site would also be allocated in Ndumu Game
Reserve for a lodge. Thus, Rocktail Bay operations started in February 1992 while Ndumu was
ready for occupation in March 1995. Consultants were contracted by the KBNR who worked out the
partnership arrangements with the various parties. The partners in the operation include:

• Conservation authority

Isivuno is a Section 21 (non-profit making) company that was formed as the trading arm of the
KwaZulu Conservation Trust, acting on behalf of the KwaZulu Department of Nature Conservation
(now KwaZulu Natal Nature Conservation Services, KZNNCS). Isivuno obtained a 99-year lease
from the government for the lodge sites at both Ndumu and Rocktail Bay. It has since sub-leased the
sites to a Lodge Operating Company for an initial period of 20 years.

• Local communities

Ndumu Wilderness Camp falls under the jurisdiction of the Mathenjwa Tribal Authority, while
Rocktail Bay Lodge falls under the Mqobela Tribal Authority. In both cases a trust has been formed
to represent the community interests. These trusts hold shares in the Lodge Owning and Lodge
Operating Companies, and profits are distributed by the trustees.
 4

• Private sector

Wilderness Safaris (WS) Maputaland Pty Ltd is a subsidiary of Wilderness Safaris Pty Ltd and has
been formed to look after the group’s interests in KwaZulu Natal. The generic model is
diagrammatically represented in Figure 1.

Figure 1 Schematic of the partnership arrangement

CENTRAL GOVERNMENT

99 YEAR LEASE

ISIVUNO
SECTION 21 COMPANY

20 YEAR LEASE

LODGE OWNING COMPANY

Ithala Bank 42% Isivuno 43.5 % Community 14.5 %

20 YEAR LEASE

LODGE OPERATING COMPANY

Wildnerness Safaris 50% Isivuno 37.5 % Community 12.5 %

Isivuno has sub-leased its 99-year holding to a Lodge Owning Company in which it has the major
shareholding (43.5%). KwaZulu Finance Corporation (now Ithala Bank) has a 42% share and the
Community Trusts hold a 14.5% share.

In the Lodge Operating Company structure, Isivuno holds a 37.5% share; the community trust a
12.5% share and WS the major share of 50%. WS entered into the Lodge Operating Company after
Isivuno and its consultants had designed the share allocation.

1.2.1 Financing the development

Loans have been secured through Ithala Bank while WS has also lent money to the Operating
Company. Substantial renovation and refurbishment has been carried out, particularly at Rocktail
Bay Lodge. The camps are valued at SAR 8 million (US$ 1,019,108). The monthly operating costs
are SAR 160,000 (US$ 20,383) at Rocktail Bay and SAR 120,000 (US$ 15,286) at Ndumu, totalling
SAR 280,000 ($35,669) per month. These costs cover the following:

Food, bar & curio costs Environmental impact studies

Housekeeping Marketing & advertising
Levies & permits Vehicle expenses
Gas & fuel Insurance
Salaries & wages Camp maintenance
Consulting fees Fixed and variable rentals
Legal fees Depreciation
Audit fees
5

1.2.2 Market segment

The tourists to Ndumu are predominately bird watching enthusiasts. The reserve is one of the finest
birdwatching sites in the country, with 60% of South Africa’s birds (over 400 species) recorded.
Although not a ‘Big 5’ destination, Ndumu contains black and white rhino, leopard, hyena, buffalo,
hippo and crocodile. The majority of the guests at Ndumu are foreign, although a number of South
Africans do visit. Visitors to Rocktail are also predominately international, who are seeking an area
of secluded sandy beach for fishing, snorkelling and general relaxation. The lodge also offers
nocturnal walks and drives along the beach in search of leatherback and loggerhead turtles laying
eggs and, later in the season, the hatchlings going out to sea.

1.2.3 Pro poor objectives and elements

The commercial partnership with neighbouring poor communities means that the initiative is
implicitly pro-poor. This is quite different from standard practice in the region, whereby a private
lodge is built on private land, or within a game reserve on land leased from the conservation
authority. In addition the areas where the lodges are located are under-developed with less security,
a high incidence of malaria and widespread poverty, which makes the initiatives more pro-poor
compared to much of mainstream tourism.

In addition to the partnership with the community, pro-poor elements of WS strategy include
• a policy to employ local people
• encouraging local provision of services
• enhancing the community share in the partnership.

Increased interaction between WS and its community partners has led to an improved common
understanding of the importance of active participation by all partners for the success of the
enterprise. The increased prominence of cultural tourism provides more opportunities to enhance
and diversify the WS product, with the potential for greater community involvement in joint
planning and implementation of new products. Options are currently being pursued with the
Community Development Trust partners, other community structures in the region and, with the
assistance of a community advisor, through linkages created with other initiatives in the region. An
advisor is contracted by WS to explore various possibilities with the partnership including the
conservation authority KZNNCS. These secondary initiatives could be critical in transforming WS’s
Maputaland operations into a profitable enterprise and developing the region as a unique
destination.

Provision of local services

Local cultural and community activities have also been integrated into guest itineraries. For
example, performances by the local Sangoma (traditional divination and herbalist) Training School
were sold to tour operators at international travel markets during 2000 and are being booked through
travel agencies as part of activity choices (see section 2.1.1 for a description of Sangoma
performances).

WS employs a community-based security service, rather than a commercial one. This has recently
become part of a newly established Community Policing Forum and has proved very effective in
 6

curbing local crime. In addition, taxi drivers have been employed at each lodge to transport staff to
and from their homes outside the reserves.

The WS advisor in the region has also been contracted to help increase the benefits to the
community partners and to diversify the tourism service. This will create a better product range for
guests and additional economic opportunities for the community. More recently, efforts have been
made to assist communities situated on the border of Ndumu Game Reserve to establish a
community conservation area. WS has also tried to help the Mbangweni community situated on the
reserve’s eastern border and who have obtained non-occupational rights to a portion of it, with
tourist related development. Potential enterprise developments, including buffalo breeding, elephant
back safaris and a crocodile farm, are currently under review.

Enhancing the community share in the partnership

WS has attempted to engage a donor agency to buy out Isivuno and Ithala Bank’s shares on behalf
of the community. This is still in progress.

1.2.4 Efforts to include other stakeholders

Recently, there have been efforts to involve additional stakeholders, including NGOs, other
communities and international agencies, in planning a more comprehensive Wildlife Complex. The
proposal for the complex includes Ndumu Game Reserve (11,000 ha), the community conservation
area (3,500 ha), part of the Mbangweni Corridor (5,000 ha) and the Tembe Elephant Park (30,000
ha), and areas in Mozambique. In order to achieve some cohesion in the Ndumu destination, a
number of new stakeholders have been brought in such as the Peace Parks Foundation, Transfrontier
Conservation Areas Programme, Lubombo Water Ways Programme and the SDI, as well as various
government agencies.
7

2. Pro-Poor Focus

WS did not embark on a ‘pro-poor strategy’ in either 1992 at Rocktail Bay or 1995 at Ndumu since
there was no such strategy in place. Rather, the company engaged with its existing neighbouring
communities who became partners in a predetermined shareholding arrangement, in keeping with its
‘neighbours’ policy (Box 2.1). This arrangement ensures that the community receives a share of
profits from the Lodge Owning Company and the Lodge Operating Company, although at this stage
neither has started to produce a profit. Thus, although WS has undertaken a number of pro-poor
activities, the real benefits will only become apparent once the business is financially successful.

Following recent SDI infrastructural developments, the area has received a lot of interest from
investors, albeit cautious. WS is the only substantial tour operator with an extensive marketing
network that has so far been prepared to establish operations in this contested conservation area,
where land claims, crime and the threat of malaria are permanent features. In line with its
commitment to working with its neighbours, WS has taken on the risk in the hope that a partnership
with local communities will improve wilderness conservation and transform the area into a
deserving tourist destination. In this region of Maputaland the only other professional safari
operators in the same league as WS are situated on private land rather than within provincial game
reserves. WS’s commitment stems from a vision for the region, which recognises the development
potential of such an environmentally and culturally diverse area. Despite setbacks and obstacles,
such as WS’s plans to liquidate in 1999, and the lack of cooperation from the conservation authority
as partner, WS has persevered.

Box 1. Origins of WS pro-poor strategy

In a brochure entitled “Our Work With Neighbouring Communities’’ (2001) WS outlines its position in the
following way :-

‘’Wilderness Safaris understands the need to uplift and empower communities living closest to the areas in
which we operate. Wherever possible, we ensure that people from these communities derive benefits from
wildlife-based tourism.

We recognise many years ago that communities who live in, or border on, wildlife areas have key
conservation roles and undeniable rights.

Wherever possible, we have involved them in wealth generation through integrated tourism projects and by
providing employment and business opportunities, transfer of skills and training in decision-making
processes.
A selection of community-related projects currently in progress at Wilderness Safaris include :

Ndumu Wilderness Camp in Ndumu Game Reserve and Rocktail Bay in the Maputaland Coastal Forest
Reserve,
have their respective neighbouring communities and the Parks themselves as shareholders in the camps.
The communities own their shares through the community share hold trust scheme. Wilderness Safaris and
the operating companies of which the community is also a shareholder, pay lease rentals over to the Lodge
Owning Companies. The project financially rewards the community, who are the traditional owners of the
land; KwaZulu Natal Conservation Authority who are the conservator of the Parks and Forest Reserve, and
Wilderness Safaris in their capacity as the manager of the lodges.

Damaraland Camp revenues flow to the local community through significant bed night levies, provision of
services, secondary businesses, and salaries and wages. The community directly earns 10% of the camp’s
bed night revenue. Our involvement was instrumental in this community being the first in Namibia to have
 8

their area proclaimed a Community Wildlife Conservancy. The community is our landlord here. This area,
the Torra Conservancy, is over 80 000 hectares and is home to many of the rare and endangered desert
adapted elephants and black rhino. This area is rated by the WWF as the most successful community project
in Namibia.

Duba Plains, Little Vumbara and Vumbara are part of a successful rural community development
programme in the northern Okavango. Villagers who live to the north of the Okavango have been given this
prime area by the government to run and manage. They have formed the Okavango community Trust to
oversee the project and to receive the flow of funds. The communities are now benefiting from the
substantial cash and auxiliary returns, jobs, skills transfer and training on how to nurture this area, and in
turn, are doing a superb job of looking after the region;

Makololo’s principal shareholder is a neighbouring rural family who run a small trading store just outside
Hwange National Park. Funds from tourism have now started to flow through to those people who live
closest to the park through dividends and salaries. Linkwasha, Giraffe Springs and Ruckmechi have local
indigenous partners that ensure that any money earned gets more widely distributed.’’

2.1 Assessment of broad pro-poor tourism strategies

As outlined above, the principle pro-poor element of this initiative is the tri-partite nature of the
contract. This is complemented by WS’s support for local employment, as well as its broader
promotion of local services and the role of the community in tourism development. This section
assesses in more detail WS’s tourism strategies that affect the poor.

2.1.1 Expansion of business opportunities for the poor

There has not been a significant growth of small enterprise development programmes. Training has
primarily been oriented towards staff employed directly in the running of the lodge. Although there
are ad-hoc purchases from local curio sellers and fruit and vegetable stalls, a strategic plan to
develop or encourage local enterprises does not exist. However, the presence of the lodges has
clearly expanded the local demand for products and services.

Enterprises which have been developed as a direct result of Rocktail Bay and Ndumu include a taxi
service and cultural excursions, including a Diviners Training School and Sangoma Performing Arts
Group. The taxi services at each lodge are run by members of the immediate local communities, and
contribute an additional ZAR 29,000 per annum to local incomes in the area. The Sangoma Dance
Team performs traditional ceremonies and dances for visitors to both lodges on request. Sangomas
(izangoma) are traditional healers in Southern Africa who practice divination through ancestral
spirits, which complements holistic health care through administration of herbal remedies and
treatment. Maputaland has a high population of sangomas who practice their art using the many
herbal remedies available from the region’s biodiverse ecosystems. The principal Sangoma who
provides excursions and performances for WS guests runs a successful practice and training school
where he trains interns. The money earned from the performances has allowed the Sangoma
Training School to take on financially disadvantaged students, and to speed up the rate of training
by funding materials for key ceremonies. It has also allowed the principal Sangoma to employ
people to work in the fields, and to establish a small shop.

The taxi service at each lodge is used both for staff transport and food and solid waste disposal.
Therefore, these are two transport businesses, which have benefited from providing a regular service
to a client.
9

‘Hippo tours’ have been introduced for Rocktail Bay guests which employ local community
members to guide guests to local hippo habitats. Previously considered a pest by the villagers, the
hippos are now tolerated because the tours generate a fixed monthly fee for the community, plus
money per tourist if hippos are seen. The income also increases community awareness of the value
of biodiversity conservation in rural areas.

These small initiatives aim to improve community benefits since any significant dividends from the
shareholding arrangements will be long in coming. In recognition of, for example, the social and
environmental responsibility as exemplified in a local contract to remove waste from the proclaimed
area, WS received a British Airways Award for Responsible Tourism in 1998.

Nevertheless, there is much untapped potential particularly in the supply of tourism-related services
and products. What is required is some way of organising, coordinating and training local people to
develop these enterprises. Since this is not the core focus of the private sector’s work, nor the
competence of the conservation authority, other means needs to be considered. A local agency is
needed to coordinate and develop service and production options, particularly those that can build
on local knowledge, culture, culinary skills and cuisine, and integrate them into tourist attractions.
There is an urgent need to explore these options since expanding and diversifying the product would
be mutually beneficial to both the tour operator and community (see section 4.1)

2.1.2 Expansion of employment opportunities for the poor

All staff, except for management, are recruited from the area via the community partners. At
Rocktail Bay the assistant manager is also from the local area. Between them, Rocktail Bay and
Ndumu Lodge have created 50 permanent jobs for local people who were previously unemployed.
They have also generated opportunities for casual labour from the area: 3 people at Rocktail and 2 at
Ndumu are usually employed on a rotating basis. Eight people are also employed on a rotational
basis to work in the Community Policing Forums in the rural areas neighbouring each lodge. In
addition, 55 people were employed temporarily over a four month period in 2000 during
refurbishment of Rocktail Bay.

There are pitiful job opportunities in the area, so the existence of the two WS lodges, and the policy
of employing local people, have directly resulted in a higher proportion of local people in
employment. The lodges have also allowed local people to receive training in tourism and
opportunity for advancement within the company, for example, the assistant manager at Rocktail
Bay is from KwaMqobela, and has been trained up from an initial role as a labourer on the lodge
construction.

When new staff are required at Rocktail Bay, the manager or assistant manager approaches the
Community Trust and Induna (or ward Headman). The names of all interested candidates are placed
into a hat, and the names of prospective candidates are drawn at random. This system appears to
have been designed by the community. The lodge manager and divisional head from WS are then
free to interview those who are selected, and have final say over who is employed. This unusually
equitable arrangement of choosing potential candidates has provided access to employment to a
broader selection of community members. Experience in other lodges (e.g. Spenceley, 2000) reveals
that a common approach is to ask existing employees to recommend friends or relatives for
employment. This process limits the benefits to small numbers of families and does not permit
equal opportunity to all.
 10

In cases of dismissal, members of the community trust are consulted and informed of the decision
making process, but have no remit to counter decisions. Such intimate involvement in business
management issues would be unworkable (see Annex 5). The lodge does not employ more people
than the average lodge, but does employ a higher proportion of local people.

2.1.3 Addressing the environmental impacts of tourism that particularly affect the
poor

The Rocktail Bay tourism development has not addressed the environmental impacts of tourism on
the poor. As the lodge lies within the Maputaland Coastal Forest Reserve, access to natural
resources and the land on which it lies is controlled by KZNNCS. There has been customary use of
resources within the forest and the inter-tidal zone, but this has gone uncontrolled for fear of
reprisals and animosity towards KZNNCS. However, non-local people must now legally apply for
permits to fish from the coast, and there is a programme of developing a suitable and acceptable
permit system for local communities to ensure that resource use is sustainable. The presence of the
lodges has not altered the policy of KZNNCS with respect to access to resources for local
communities.

Ndumu Game Reserve, which also falls within the administrative jurisdiction of the KZNNCS, does
not allow people into the reserve to harvest natural resources. However, meat and skins from culled
animals are sold cheaply to local people.

2.1.4 Enhancing the positive and addressing the negative social and cultural impacts
of tourism on the poor

The employment policy of recruiting all staff, except for management, from the local area has had a
very positive social impact on the poor (please see section 3.2.3.1 for details of impacts). People
from the local community who are now employed at Rocktail Bay and Ndumu have no prior
training in tourism or experience with tourists, and often facilities as basic as toilets are not found in
their own homes. The staff turnover is also particularly low, which means that the policy benefits
WS in terms of reducing training costs over time, while offering long-term employment prospects to
local people.

While WS does not operate a pro-women employment policy, women have benefited significantly
from employment opportunities. There was no evidence of sexual exploitation nor of a loss of
identity presented during the study. However, it is clear that jobs in security, maintenance and
guiding tend to be allocated to men, whereas the laundry, kitchen and housekeeping sections are
predominately staffed by women.

WS does not become involved in community decision making over expenditures, preferring instead
to leave it to the communities to set their own priorities and decide how best to spend their
dividends.

2.1.5 Building a supportive policy and planning framework

The partnership arrangement established by WS has had some impact on policy and planning for the
development of the entire Lubombo SDI as a tourist destination. WS has been consulted about
11

future partnerships, while this report will provide background material to an examination of a range
policy and planning scenarios for new tourism investment in the region.

2.1.6 Developing pro-poor processes and institutions

The partnership arrangement requires the establishment of local bodies with whom WS can
negotiate, who can represent the communities and who can make decisions and manage the
resources on their behalf. WS aims to strengthen these institutions through its endeavours to buy out
the bank’s and Isivuno’s shares and increase that of the communities. WS has also assisted with
land claims and helped communities realise the benefits through independent community-based
tourism development.

2.2 Specific actions to involve poor people in tourism

There are many barriers to poor people’s involvement in tourism, and while WS has a commitment
to expand community benefits, many fall outside its area of expertise. Both the lodges are located in
under-developed and isolated areas where people lack awareness, skills and capacity to respond to
the demands and opportunities that tourism brings. Tables 2.1 and 2.2 provide details of specific
problems encountered by the initiatives, and the efforts being made by WS, with its community
partners and other stakeholders to unlock the potential.

Table 1 Actions to address barriers to participation of the poor in tourism, Rocktail

Issue Identified as a barrier Means of overcoming it

Lack of human capital – Yes. There is no external training available New employees are unskilled and
e.g., skills to members of the community who wish to are trained on an apprenticeship
be involved in tourism basis by WS. There is no formal
training for staff.
Lack of financial capital Yes. Limited credit available through Employment and Trust dividends
– e.g., micro credit, ‘stockvels’ (local savings club) externally from WS. Staff bank accounts to
revolving loans receive wages provide potential
access to credit.
Lack of social Yes. Training of employees to improve
capital/organisational social capital. The community trust
strength has developed organisational
strength.
Gender norms & No. Both men and women are employed
constraints within the lodges, and are represented on
the Trusts.
Incompatibility with None reported.
existing livelihood
strategies
Location Yes. The community lies about 45 minutes None.
drive along very poorly maintained roads
from the main tourist route through the
area. They do not, therefore, have access to
passing tourists

No. The proximity of the community to the

lodge is the primary reason for their

participation in the partnership, and their
employment at Rocktail Bay.
Lack of land Yes. Land tenure is on a communal basis
ownership/tenure where land is held in trust by the Tribal
Authority and allocated on a usufruct basis.
Lack of ‘product’ Yes. The local people do not have anything
to sell to the lodges or tourists in any
formal sense.
Planning process favours Yes. The SDI has not directly affected the
others – lack of planning communities around Rocktail, as it is
gain difficult to access the major tourist road.
Regulations & red tape Yes. In order to develop a community
campsite at Rocktail Bay, the community
will require authorisation from KZNNCS.
They are unsure as to the process and how
best to approach the issue without
alienating the conservation body.
Inadequate access to the Yes. There are no passing tourists through
tourism market the settlement around Rocktail Bay that are
not heading directly to the lodge.
Low capacity to meet This depends on the tourist market. There
tourist expectations is lack of understanding that the lodge is
conducive to purchasing local fresh
produce and would purchase local curios to
sell in the shop. There is additionally a lack
of understanding of what would be required
to initiate and successfully run a
community tourism operation.
Lack of linkages between Yes.
formal and informal
sectors/local suppliers
Tourist market (segment) Yes. Local people do not have the capacity
inappropriate or understanding of the luxury tourism
market to cater for them, or attract them to
the area.
Lack of pro-active Yes. There is a lack of training support for
government support for members of the community, and inadequate
involvement by the poor. access to finance.
12
The Ingonyama Trust or Zulu
King’s Trust has been established .
Informal purchases of curios and
food by the lodge from local
people. Initiation of ‘hippo tours’
for Rocktail guests, where the
community receives a fixed
monthly fee, and money per tourist
if hippos are seen.
The community requires a mediator
to act between them and the
KZNNCS. Such a person or
organisation needs to have
understanding of the conservation
services processes and of the Zulu
language and culture. WS
consultant has been asked to assist
Trade will have to be directed into
the area through advertising and
information to supply potential
community operations. This is
probably outside the remit of WS,
who may prefer to see an external
agent involved.
Communication, education and
training are required. To date there
has not been any specific actions to
address this capacity issue outside
of training WS staff.
There have been few attempts to
formalise linkages including the
taxi and security services. Informal
purchases by WS of food and
curios does occur, but there is a lot
more unrealised potential.
The idea of community campsite is
being explored by the community
neighbouring Rocktail. This would
cater for the backpacker market and
budget tourists.
13

Table 2 Actions to address barriers to participation of the poor in tourism, Ndumu

Issue Identified as a barrier Means of overcoming it
Lack of human capital, Yes In house training
e.g. skills
Lack of financial capital, Yes Not started – recommendations
e.g., micro credit, made. See Poultney, 1999 approach
revolving loans to Land Bank and other institutions.
Lack of social Yes Need local agency to link capacity
capital/organisational building to tourism market
strength
Gender norms & Negligible, 71% of staff employed are
constraints women & well represented in community
structures
Incompatibility with No
existing livelihood
strategies
Location No
Lack of land Communal land tenure & usufruct. In order for community to start
ownership/tenure enterprises such as the community
conservation area, The Ingonyama
or Zulu KingTrust has set up a
division to assist in making land
available for development. WS will
work with the Trust.
Lack of “product” Accessibility of product. There are a number of possible
attractions eg Border Cave, wildlife
and cultural assets, which need to
be developed and made accessible
to tourists. The Lodge takes people
to the sangoma school, or organises
and subsidises transport for
performances at Ndumu and
Rocktail Lodges
Planning process favours Yes. The process targets investors as the Approaches have been made to the
others – lack of planning key drivers in the region, while the unique local tourism association and SDI
gain selling points, eg the diversity of products, to include locally owned products
culture and environments, are not into the planning of the region.
sufficiently packaged by the authorities.
Regulations & red tape Yes
Inadequate access to the Yes. Limited throughflow of guests WS has tried to integrated local
tourism market products into a regional circuit to
increase turnover for mutual benefit
Low capacity to meet Yes In core business this is mitigated by
tourist expectations experienced managers who train
staff.
Lack of linkages between Yes Nothing substantial
formal and informal
sectors/local suppliers
Tourist market (segment) Yes – for expansion Additional accommodation planned
inappropriate for budget tourism as part of
community project
Lack of pro-active Conservation authority and partner,
government support for KZNNCs are hostile to increased activity.
involvement by the poor. They do not understand that greater
 14

benefits will come from diversifying and

improving the product.
Others General understanding of the industry and A local NGO or community based
related opportunities organisation needs to be trained in
tourism to help take advantage of
the various opportunities. This
would also entail some
coordination training and setting up
of supply chains
15

3. Results and Impacts

3.1 Progress and challenges

As far as the Regional Director of WS is concerned, there has been little progress at either Rocktail
Bay or Ndumu in the last few years. Indeed, in 1999 the company considered liquidating. More
recently, WS gave an ultimatum to the SDI and KZNNCS. If there was no progress with new
products in the next two months, the lodges would be sold along with the new concessions that are
going out to tender in the GSLWP and Lubombo SDI (Pers. comm. WS Senior Management
November, 2000).

WS believes that guest occupancy will improve substantially if new products become available.
Communities too would derive greater benefits from expanding opportunities for participation in
the enterprise, employment and income as well as the increase in operating profit, of which a 12.5%
share would go to the community. There are also plans to buy out Isivuno in order to increase the
community share. At the moment the major challenge for the businesses is to break even.

The perception of members of the Community Trust and Community Development Committee in
KwaMqobela was that they were incredibly thankful to WS and Rocktail Bay for the opportunities
they offered. They regarded the disbursements from the Lodge Owning Company and the
employment opportunities as invaluable, and the only real prospects they were aware of. The real
problems were the lack of infrastructure in the area, such as roads, electricity and water supplies, but
there is a lack of understanding that dividends from WS would never be able to meet these financial
costs.

Beneficiaries of the Ndumu operation are less enthusiastic. The dividends from the shareholding
and direct benefits from employment and the provision of services in an area where the population
is in excess of 20,000 people is small compared with Rocktail Bay. Rocktail has a significantly
smaller, more proximate and homogenous population numbering 1,566 people who make up the
community partner. People around Ndumu also claim that they have very little control of the
finances that go to the Mathenjwa Tribal Authority who administer the Trust. Thus, ways are being
considered to merge various community structures within the Mathenjwa Tribal Ward in order to
secure a more equitable and accountable redistribution of benefits and opportunities in the area.

3.1.1 Key factors influencing implementation of the initiative

The key factor influencing implementation of the initiative is the financial success of the core
business, (i.e. lodge operations and tourist turnover). Since the region has not yet developed into a
global tourist destination, and since there has been little coherence in regional planning, tourist
turnover has been low. WS has therefore attempted to broaden the activity base to include new
products such as cultural excursions, boat trips on the waterways of Ndumu and a launch site for
scuba diving and other marine activities at Rocktail Bay. These new activities have taken a great
deal of time to plan and implement, predominately due to the different priorities of the conservation
authority. The KZNNCS faces a dilemma. Its priority is to protect natural resources from the
perceived threat of incremental tourism development, but it also needs to engage the private sector
to help fund its conservation activities. The KZNNCS therefore regards the private sector as a
necessary evil. For example, besides rental, WS pays SAR 120,000 (US$ 15,287) annually to
KZNNCS to finance its sea turtle survey and monitoring work. The conservation authority recruits
 16

auxiliary turtle counters and scouts to monitor the turtle breeding and protect the turtles. This is
becoming increasingly important since turtle eggs are now being collected and sold to desperate
people as a cure for HIV/AIDS. Since KZNNCS must agree to any development of infrastructure at
either Rocktail Bay or Ndumu, WS must persuade the authority that the integrity of the reserves will
not be threatened. Nevertheless, KZNNCS remains suspicious of the private sector and continues to
be a reluctant partner in the tourism enterprise.

Without an increase in turnover at both lodges the initiative cannot be sustained commercially and
therefore the involvement of WS within the entire partnership is in jeopardy. Moreover, as far as
WS is concerned, training and other support will not be forthcoming if the core business does not
generate profits.

Other options, such as project development with community partners, are not part of WS’s
competence. Instead they have engaged a consultant to explore additional ways of increasing
community benefits from tourism. Such benefits will need to come from donor support or regional
initiatives, since the WS group will not agree to additional investment into, as yet, unprofitable
products.

It is not clear to what extent the lack of financial success at the lodge is due to lodge management,
head office strategy, or the location of the lodges themselves. It is most likely to be a combination of
these factors. To illustrate, it was clear from discussions with the managers of Ndumu Game
Reserve that they believed they were taking in more than their fair share of free or discounted
guests, which were organised directly by personnel at WS head office. There is also an impression
that the two lodges do not fit within WS’s larger collection of Southern African lodges, which are
located in well- known and more popular destinations. Consequently they are more difficult to sell.
It is apparent that the WS sales team has a great deal of influence over the occupancies at Rocktail
Bay and Ndumu. So it is possible to design a new sales approach in conjunction with the marketing
department to increase the lodges’ success rate. However, his study did not entail a business
assessment of the corporate operations of WS, and therefore it is not possible at this time to evaluate
the relative importance of these factors on the financial situation of the lodges.

3.1.2 PPT as an element of a broader programme

WS’s company policy aims to benefit poor, rural communities close to its operations and states that,
‘…wherever possible we have involved (local communities) in wealth generation through
integrated tourism projects and providing employment and business opportunities, transfer of skills
and training in decision-making processes’ (see Section 2 for full account: Wilderness Safaris,
2001)

However, the fact that the pro-poor benefits from the Lodge Operating Company are intimately
linked to the profitability of the business has created tensions within WS. This is because some staff
believe that too much has been done to subsidise a marginal operation, such as additional loans to
expedite community dividends.

3.1.3 How has the initiative evolved or adapted to new circumstances?

New circumstances can perhaps best be gauged by the political changes at a national level in the
country and provincial government. Since the province of Kwa Zulu Natal has a different governing
17

political party, the Inkatha Freedom Party, to the ruling national party the African National
Congress, there has been regional conflict which has obstructed development, particularly in the
first five years of the new South Africa. However, tensions at the local level have abated following
the 1999 elections when a coalition government was formed in the province.

During the early stages of establishing the lodge at Rocktail in 1992, WS simply complied with the
local ordinances and regulations. Since 1994 governance has become more democratic, and the
company has been more prepared to engage politicians to secure a better deal with the help of
advisors.

Stronger communication channels with the community have evolved where community structures,
such as the trusts, have become more familiar with WS tourism operations and the attendant
problems. A stronger partnership with the community has also helped negotiations with the
conservation authority to improve and expand the product. Recently a boat launch site at Rocktail
Bay has been agreed for scuba diving, whale watching and fishing, while a swamp boat has been
launched at Ndumu for game viewing and tiger fishing. These additional activities are designed to
attract more guests thus making the core business more profitable as well providing additional jobs
and opportunities for community partners.

3.2 Relevance to the poor and poverty reduction

3.2.1 Beneficiaries of the initiatives

The primary beneficiaries are locally employed staff, the majority of whom are women. Other direct
beneficiaries include large and small traders who supply the lodge and staff, casual workers, those
running small enterprises used by tourists, and more broadly the members of the community trusts,
particularly the committee members who are the most active participants.

In a lodge staff profile, 65.5% were women, which means that, in many cases female-headed
households have benefited from the initiative. They are able to support families averaging 5.4
people in the Rocktail Bay area and 6.6 in Ndumu. The local Boxer Supertrade Chain Store in both
Ndumu and Manguze (the nearest large store in the vicinity of Rocktail Bay) has benefited
tremendously from direct purchases of goods for the lodge guests and from staff purchases, as have
small traders (see Tables 3.1 and 3.3 below).

The poorest living in the rural areas around the lodges have gained most from employment and
dividends from the community trusts. The main beneficiaries are those who have received
employment and training. The benefits to the communities through the trust are limited, since the
majority of homesteads have not been affected sufficiently to alter their status from ‘poor’, but they
are certainly not worse off than before.

3.2.2 Financial benefits to the poor

Rocktail Bay
 18

Table 3 Financial earnings of the poor, Rocktail Bay

Approx. amount Type of person Number of people

per person, p/a earning
ROCKTAIL BAY
(SAR)
a) Wage income
Local lodge staff
• Assistant manager 31,800 Skilled 1
• Guides 21,624 Skilled 2
• Security 21,624 Skilled 4
• Chef 16,536 Skilled 2
• Maintenance 16,536 Skilled 3
• Head laundry/scullery 15,264 Skilled 2
• Laundry 13,992 Skilled 6
• Waitress 13,992 Skilled 6
• Casual (regular) beach cleaning 1,272 Unskilled 1
• Casual (regular) labourer 7,416 Unskilled 2
Annual Total = SAR 458,760 (total wage bill) 29 people employed
b) Earnings from self-employment,
informal sales, casual labour (est.)
Total earnings
- curio sellers 3,120 Not known
- informal food stalls-from staff wages 52,800 Not known
-from lodge 1,200 Not known
- wood salesmen 1,800 Not known

Earnings p person
- casual (temp) lodge labour over a a) 2,178 a)Semi-skilled 5
period of 3 months in 2000 b) 311 b) Unskilled 50

- casual employees of lodge staff 911 Unskilled 26

Annual Total = SAR 32,560 (total earnings) 81+ people
SAR 76,486 (re-spent from staff wages)
c) Small enterprise earnings/profits
Earnings p person
- community policing forums 7,200 Unskilled 4
- taxi driver 29,200 Semi-skilled 1
- sangoma training school 4,500 Skilled 1 sangoma
- masonry stone and sand supplier 5,000 - 1 Company

Total earnings
- food supplies 4,500 - Not known
Annual Total = SAR 78,000 p/a 6+ people
d) Collective income to the
community trust Earnings divided
Total earnings between these people

- Lodge owning company (14.5%) 21-32,000 pa Whole community 1,566

(120 k since 96)
- Lodge management (12.5%) No dividends Whole community 1,566
- Hippo tours (KwaMqobela only) 4,200 KwaMqobela 770
Annual Total = SAR 21,500 – 32,500 p/a 1566 villagers
e) Other cash income

- support of staff-dependent family 844 140

Annual Total = SAR 118,160 p/a 140 people
19

Total earnings p/a

Local direct beneficiaries of lodge SAR 569,320 90 beneficiaries
and staff earnings
Direct earnings of whole community SAR 21,500–32,500 1566 villagers
Indirect secondary spending locally SAR 194,646 156+
NB: Figures in italics are secondary spending items, which have already been accounted for in staff wages

Of the SAR 569,300 disbursed by Rocktail Bay to the community in wages, payments for services
and supplies, at least 34% (SAR 193,562 – US$ 24,656) is re-spent within the local area on service
and product purchases. It is likely that a fair proportion of people making these sales are also poor,
and surviving through selling agricultural produce and second-hand clothing. Since this study has
not followed the path of spending by local stall owners and employees of staff, this proportion is
likely to be an underestimate.

With respect to direct employment, 29 local people (1.9 % of the community) benefit from an
average wage of SAR 15,800 per year (ranging from SAR 31,800 to SAR 1,272 – US$ 4,051 – US$
162). Each of these staff members supports an average of 5.4 relatives, which suggests that 10% of
the community is indirectly supported by wages from Rocktail Bay. The number of people within
the community supported by the collective Trust income from the Lodge Owning and Operating
Companies will change in the future, depending on the rate of population growth.

Potential expansion

There are no plans to increase the number of employees within the lodge at the moment. However,
it is likely that the construction and operation of a new boat-launch site, if it is agreed to by
KZNNCS, will generate additional employment. In addition to the temporary labour required for
construction, the launch site will generate new staff to service the site, operate the boats and dives,
although they will be employed by qualified charters brought in from elsewhere. There is also
potential for introducing horse riding operations into Rocktail Bay, which could be hosted from
KwaMqobela, the community area.

Local earnings from informal sales of food are approximately SAR 54,000 (US$ 6,879) per year.
However, if the community could supply all items currently purchased by the lodge and its staff at
the local supermarket, this figure could increase almost four-fold, to an estimated SAR 410,000
(US$ 52,223) per year. In addition, the volume of timber purchased locally could have increased
from SAR 1,800 to SAR 174,000 in 2000, if local plantation managers had been sufficiently
organised to meet the construction demands of Rocktail Bay.

Staff wages currently account for over 75% of the direct financial earnings from the lodge, and
collective income for a very minor share. However, the greatest potential for increase lies in
earnings from self-employment and small enterprise development as well as dividends from the
Lodge Operating Company.

There has been an attempt to improve and diversify the WS tourism product within the shareholding
agreement, which is slow to deliver real benefits to the wider community. Dividends that accrue
from the community share in the Lodge Owning and Lodge Operating Companies are currently
limited to rental of the concession paid by WS. Dividends from the operating arrangement will only
materialise when the operating company starts to make a profit. The dividends received from the
Lodge Owning Company will also increase with a higher turnover of guests, since there is a 4%
return on guests in beds in addition to the fixed rental paid to the Lodge Owning Company (of
which the community is 14.5% shareholder). If WS succeeds in brokering a better share
 20

arrangement for the community from both the Lodge Operating and Owning Companies, the
financial returns to the local community will be much larger. At this juncture, the dividends being
paid out from the Lodge Owning Company to the two community trusts are loans taken out against
an accumulated loss.

Money distributed from Rocktail Bay Lodge Owning Company to the community has provided
SAR 120,000 (US$ 15,287) since April 1996. This theoretically benefits all members of
KwaMqobela, and averages SAR 15.32 (US$ 2) per person, per year. However, discussions with
members of KwaMqobela revealed that spending by the Community Trust had not been working
efficiently. Although the exact details have been difficult to assemble, it is alleged that the Trust has
been embezzling funds and purchasing items without prior agreement from the Community
Development Committee or the village members. This had led to a group within KwaMqobela
rallying support to oust the whole Trust, and elect a new committee. The new committee members
are currently trying to determine how much of their money has been misspent, and are dealing with
administrative problems of gaining access to their remaining funds. Reports from one of the ex-
Trust members indicate that of the SAR 120,000 disbursed to the Community Trust from the Lodge
Owning Company, only 46% (SAR 55,500) can be accounted for as local development expenditure.
Given that the remaining balance in the Trust account stands at around SAR 25,000, the implication
is that around SAR 40,000 is missing. The money that is accounted for through purchases in the
Trust area as shown in Table 3.2:

Table 4 Spending by the Mqobela Trust

Purchase Amount Spent Number and type of

SAR beneficiaries
KwaMqobela Primary School 26,100 180 students
- Fencing
- Building 3 offices
- Construction of 1 classroom
KwaNgwanase Primary School 3,000 320 students and 7 teachers
- Construction of 5 cottages for
Teachers accommodation
Educational Bursaries 22,200 4 students and 6 ex-committee
- 3 teaching courses members
- 1 first aid course
- 1 attendance at graduation
- training of ex-committee member
(book-keeping etc).
Bridge repair / road maintenance 4,200 When the work is completed,
- Materials the whole village (1566 people)
(This job needs R10 k to complete) will benefit.
Total SAR 55,500

The new Trust voiced concern that they did not have sufficient understanding of financial matters to
be able to manage the funds. They also wished to attend training courses in book-keeping to help
their work.

These figures indicate that the money accrued by individuals through employment is much greater,
but earned by fewer individuals, than money disbursed through the Community Trust. Money
distributed by the Community Trust amounts to a very small amount per person if averaged across
the village population, but is used to finance community development that would not otherwise
take place. There are very few other sources of income for development that the community can
21

access. The community of KwaMqobela had benefited from a clinic, which was constructed with
money from an Independent Development Trust, but this has not supported a regular doctor or
nurse. A water reticulation system was in the process of being constructed at the time of this
assessment, which was funded by the regional services council. The physical benefits, rather than
the financial benefits from Rocktail Bay, are higher from Trust income than that from direct
payments from the lodge itself. This is because money from staff wages and purchases support
individuals and their families, rather than the construction of infrastructural improvements which
can be utilised by the whole community.

Ndumu Lodge

Table 5 Financial earnings of the poor, Ndumu Lodge

Approx. amount Type of Number of people

NDUMU LODGE per person person earning
(range ZAR)
a) Wage income
Local lodge staff – Ndumu Lodge
• Guides 17,658 Skilled 2
• Kitchen Staff 10,971 Skilled 2
• Waitress 10,971 Skilled 3
• Chef 15,843 Skilled 1
• Apprentice Chefs 10,971 Skilled 2
• Bar lady 15,538 Skilled 1
• Maintenance 7,440 Skilled 1
• Laundry 10,971 Skilled 4
• Housekeeping 10,971 Skilled 3
• Trainee Guide / Camp hand 6,696 Semi skilled 1
• Camp hand / Driver 10,971 Semi skilled 1
Annual Total = ZAR 245,398 p/a (total wage bill) 21 people employed
b) Earning from self-employment,
informal sales, casual labour (est.)
Total earnings
- curio sellers 400 Skilled Not known
- informal food stalls - from Staff 46,594 Unskilled Not known
- wood salesmen 3,600 Unskilled Not known

Earnings p person
- casual employees of lodge staff 510 Unskilled 20
Annual Total = SAR 4,000 (total earnings) 20+ people earning
SAR 56,794 (re-spent from staff
wages)
c) Small enterprise earnings/profits
Earnings p person
- community policing forums 7,200 Unskilled 4
- taxi driver 29,200 Semi-skilled 1
- sangoma training school (Sangoma) 3,000 Skilled 1

Total earnings
- food supplies 3,000 - Not known
Annual Total = SAR 64,000p/a 6+ people benefit
d) Collective annual income to the
community trust Total earnings
- Lodge owning company (14.5%) 22,500- 32,500 k Whole 20,789
(99.4 k since ’96) comm
 22

- Lodge management (12.5%) No dividends 20,789

Whole
comm.
Annual Total = SAR 22,500 – 27,500 20,789 people benefit
e) Other cash income
- support of staff-dependent family 135 190
Annual Total = SAR 25,650 p/a 190+ people benefit
Totals:
Local direct beneficiaries of lodge SAR 313,398 p/a 27+
and staff earnings
Direct earnings of whole community SAR 22,500 – 27,500 20,789
Indirect secondary spending locally SAR 82,444 p/a 210+
NB: Figures in italics are secondary spending items, which have already been accounted for in staff wages

Of the SAR 245,398 (US$ 31,261) disbursed by Ndumu Lodge to the community in wages,
payments for services and supplies, at least 34% is retained within the local area on service and
product purchases. Since this study has not followed the path of spending by local stall owners and
employees of staff, this proportion is likely to be an underestimate. With respect to direct
employment, 21 local people (0.1 % of the community) benefit from an average wage of SAR
11,686 (US$ 1,489) per year (ranging from SAR 18,131 to SAR 6,696 – US$ 2,310 – 853). Each of
these staff members supports an average of 8.8 relatives, which suggests that 0.8 % of the
community is indirectly supported by Ndumu Lodge wages. (NB. It should be noted that the
proportional benefit of the community has been based on estimates of the local population, where
data from the health authority malaria control programme has not been available.)

Total earnings from informal sales of food locally are currently approximately SAR 46,594 (US$
5,936) per year, but this is all purchased by lodge staff from their wages. The lodge does not
purchase food from local people. If the agricultural and sales capacity of the community could be
increased to supply Ndumu with items currently purchased at the local supermarket, the community
could benefit from capturing a proportion of the lodge’s SAR 192,000 (US$ 24,459) annual
supermarket bill.

Money distributed from Ndumu Lodge Owning Company to the community has provided SAR
99,400 (US$ 12,662) since April 1996. This theoretically benefits all members of Mathenjwa at a
rate of ZAR 4.78 per person over a 5 year period, or less than SAR 10 (less than US$1) per person
per year. However, staff at Ndumu Lodge noted that they had not seen any benefits from this money
in the local area. This is not surprising since the Trust is located within the tribal authority, located
approximately 50 km from the directly affected community.

Similarly to Rocktail Bay, the lack of profit from Ndumu lodge has meant that, to date, the
community has not received dividends on its 12.5% shareholding of the Lodge Management
Company.

It is clear that although there are direct financial beneficiaries through wages and purchases, there
are also indirect beneficiaries through re-spending of wages. It is critical to capture this money
locally and to ensure that earnings from tourism are retained within the area as far as possible. To a
certain extent this happens at both lodges, with a small proportion of staff wages being used to fund
other employees (on average 5%), or to purchase fruit and vegetables from local farmers (on
average 22%). In some cases the produce sold is grown locally, and in others it is brought in from
further afield to be sold by local distributors.
23

Secondary spending

For an example of secondary spending within the community, it is interesting to review how the
Sangoma uses the revenue from the periodic tribal dances performed with his trainees for visitors at
Ndumu and Rocktail. The performance includes an explanation by the Sangoma of his craft and
how the whole apprentice system functions. The trainees then entertain guests by dancing; this is an
integral part of divining and is used to induce a trance and invoke the ancestral spirits. Performances
were initiated at Ndumu on New Years Eve 2000, and were taken to Rocktail Bay for specific
visitor groups during the floods.

For each performance the Sangoma is paid SAR 1,000 in addition to travel costs and meals. This
money has been used for a variety of purposes:

• Subsidising trainee sangomas There is usually a fee of three cows (or SAR 4,500 cash) for a
student wishing to train as a sangoma. Usually the Sangoma takes on 5 or 6 trainees at one time,
but with the money from the performances, he has been able to take on committed trainees who
do not have the necessary finances.
• Financing ceremonies Money from the performances is used to pay for ceremonies that are
required as part of the training course. Therefore the speed of training is improved with more
money available for materials.
• Employing people to work in the fields Local people are employed to plough fields, and have
been engaged recently to fence them. Produce from the fields (mainly mangoes and maize) are
sold to further finance the training school.
• Local purchases Groceries, goats and Zulu beer are purchased locally for daily use and for
ceremonies.
• Equipment purchases Money is used to assist trainees to purchase the finery needed, such as
skins, cloth and ornaments.
• Small enterprise development The Sangoma is currently building a small shop on his premises
to generate further funds. He also wishes to start a taxi service.
• Non-financial benefits The performances at Rocktail Bay take place on the beach. This enables
sangomas in the area to perform on a rotational basis, and allows many different sangomas the
opportunity to visit the sea, collect sea water, shells and other materials. Some people who
accompany the sangomas do so under the guise of playing drums, but may simply have never
seen the ocean before.

The Sangoma aims to provide regular and frequent performances so that he can plan ceremonies in
relation to income, and to enhance his tuition. Without the performances the school would survive,
but it would not be as efficient.

Overview

Wages

For the majority of employees at Rocktail and Ndumu, it is clear that a large number of immediate
and wider families are being supported by their wages. Although the study areas are suitable for
subsistence agriculture, and people are not starving, the wages could be used to finance additional
activities such as house-building and clothes purchases. Frequently, employees of Wilderness
Safaris are the sole earners in the household, each supporting up to 17 people. It is unlikely that
these people would have the opportunity to obtain employment and training without WS.
 24

Collective income

So far the community has only received dividends from the Lodge Owning Company. There is an
accumulated loss in both companies, but the Lodge Owning Company has paid dividends by
lending money from one shareholder, Ithala Bank, so that the communities receive some benefit to
build confidence in the initiative, although this has increased the loss further. Dividends should only
be paid out once the company debts are paid off and it starts to make a profit. However the
percentage of rental and levies paid by WS to the Lodge Owning Company that should accrue to the
community shareholder, has been paid out before the Company has broken even.

Small enterprise income

The lodges and lodge staff support local enterprises through the purchase of food, fire wood and
curios. This sector has a great potential to expand if local suppliers became available. In order to
fulfil this potential an NGO or other local agency is clearly needed to work as an intermediary
between the communities and the lodges in a similar way to the trade associations, NACOBTA and
UCOTA operating in Namibia and Uganda (see other ODI case study reports).

3.2.3 Impacts on livelihoods of the poor

The financial impacts on the very poor, while limited, have been significant for those that earn.
Each lodge employee earns twice the average income of a rural homestead (housing 6 people) on
the South African side of the border, and over four times that of an average homestead on the
Mozambique side (Els and Kloppers, 2000). Dramatic improvements to household income,
especially for female-headed households, have resulted in greater overall household security.
Similarly, activities associated with tourism related small businesses and vendors have improved
their fortunes and broadened their livelihood options. The use of community funds has started to
provide some infrastructure, access to essential services, and, particularly, education which were
previously unobtainable. Tables below (3.4 and 3.5) give more detail.

Table 6 Positive and negative impacts on livelihoods of the poor, Rocktail Bay

Benefits Losses
a) Skills , access to education In-house training for employees Recipients of Trust bursaries under no
and training Donations of school materials to high obligation to return to the area so may take
school with 324 students. their skills elsewhere.

Trust dividends used to:

b) Natural resources (access
to, use/productivity/
Sustainability of use)
Develop school infrastructure: 5
teachers houses; school fence; build 3
offices and a classroom, benefitting
522 students
Bursaries for community members to
undertake courses
Courses for Trust committee in
book-keeping
Quota system being set up by Local concern over the quota system, whereby
KZNNCS under the 1998 Marine their fishing proceeds could be confiscated if
Living Resources Act for sustainable they had caught too much.
use of fisheries.
Tree felling for homestead construction within
the reserve is prohibited.
25
c) Community organisation,
pride and cohesion
d) Access to investment funds
and loans
e) Infrastructure: (& access
to)
- Water
- roads, transport
- telephone,
communication
- electricity
- community hall
- crèche
f) Health, access to health
care
g) Access to information
h) Funds for the community
i) Other livelihood activities:
farming, employment,
migration etc
j) Markets, market
opportunities
k) Policy environment
Community Trust led to educating Corruption within the community trust
committee members and ensuring committee. A new committee has since been
public meetings. elected
Pride in the infrastructural and
educational advancements
Employment at Rocktail Bay
provides reason to stay in the area.
Staff bank accounts provide
potential for loans.
A system of stockvel acts informally
within the community as loan and
saving mechanisms.
None
Trust funds purchased some The roads leading to Rocktail Bay and the
equipment to improve the roads neighbouring communities are of very poor
leading to Mqobela. More funds are quality, and very difficult to access during wet
required to finish the work. periods without a 4x4.
Investigation is being made into
placing a cellphone phone booth in
the village by WS consultant and the
Mqobela Trust
None
None, although this has been
requested by the Trust fund
None
Clinic in the village built with funds Funds cannot support permanent staff at the
from the Independent Development clinic, and the nearest residential clinic is in
Trust; not from Rocktail Kwa Zibi 6 km away with the hospital in the
nearest main town of Manguzi.
WS has been requested to start health
tours to the region where professional
medical people come out to help
while staying at the lodge. This would
necessitate the upgrading of the
mobile clinic into a residential clinic
with a full time staff compliment
which will need to be subsidised by
WS.
No change
Funds are generated through the Only the Lodge Owning Company has
lodge owning company (community distributed dividends to the community to date.
share of 14.5%) and the lodge
managing company (12.5% share).
A community garden has the
potential to supply fresh produce.
Currently not of acceptable quality.
Knowledge of the tourism industry
through village employees has started
to generate ideas to develop a curio
market, a community campsite for
backpackers, as well as other niches..
WS’s model is being used to
investigate future partnership
arrangements

l) Influence over policy
makers
m) Jobs
n) Opportunities for informal
sector & small businesses
o) Casual labour opportunities
p) Household income
q) Local culture
Table 7 Positive and negative impacts on livelihoods of the poor, Ndumu
a) Skills , access to education
and training
b) Natural resources (access
to, use/productivity/
sustainability of use)
c) Community organisation,
pride and cohesion
d) Access to investment funds
and loans
e) Infrastructure: (& access to)
- water
- roads, transport
26
KZNNCS is hostile to tourism development.
WS currently trying to persuade them to permit
a boat launch site within the reserve..
29 local people have permanent jobs
at Rocktail Bay, which would
otherwise probably not be available.
These salaries support 29 homesteads
with an average 5.44 people per
homestead, 158 people.
There are numerous opportunities,
for eg curios, furnishings, food supply
and special tourism products, but
little has been done..
Rocktail Bay employs three casual
labourers all the year round, and
employs local people casually when
other work is needed (e.g. recent
refurbishment’s of the lodge)
For those with jobs, income has
increased. For those without,
Rocktail may enhance income of
those who sell produce to employees,
or those who work for them.
The Sangoma performances There is potential for the activity to become
enhance this cultural activity. over-commercialised over time if not managed
carefully.
Benefits Losses
People employed in the lodges have benefited Trust dividends from the lodge
from in-house training. owning company have been used by
Members of the Ndumu Development Trust the Mathenjwa tribal authority with
committee also undertook a course in book- no real accountability
keeping.
People living on the eastern boundary of Ndumu People are prohibited from
have recently won a land claim where non harvesting resources in the
occupational title has been granted to them. WS is reserve.
now assisting with realising the benefits from the
area. .
The community development trust provides a As with the Rocktail Bay case,
strong structure through which the community corruption has been identified in
may negotiate and plan. the community trust.
Staff with bank accounts now have access loans.
A system of stockvel {indigenous savings system}
acts informally within the community as loan and
saving mechanisms. In 1999 the staff participating
on the savings each SAR 11,000 {US$1,400 }
A second phase of the Government sponsored Not all homesteads in the vicinity of
Shemula Water Scheme was introduced and the game reserve have received
provides piped potable water within a reasonable water.
distance from homesteads. The scheme was
implemented in response to a request from the
Ndumu Reserve. People living on the south
eastern border will also benefit.
The need to make the game reserve accessible to
27
- telephone,
communication
- electricity
- community hall
- crèche
f) Health, access to health
care
g) Access to information
h) Funds for the community
i) Other livelihood activities:
farming, employment,
migration etc
j) Markets, market
opportunities
k) Policy environment
l) Influence over policy
makers
m) Jobs
n) Opportunities for informal
sector & small businesses
o) Casual labour opportunities
guests even in wet weather has ensured better
access by access road into the area.
The need for good communications in the reserve
and lodges has resulted in a better telephone
service as well as cell phone tower..
The need for electricity in the park has benefitted
people in the immediate area near to the main
gates where a sub station has delivered sufficient
capacity for linking electricity to homesteads.
No hall as yet although the Trust has suggested
this. .
No crèche, although it has been requested. Members of the Trust and in
particular working women members
of staff have indicted that Trust
money should be used to build a
crèche
The malaria control programme, initiated to The hospital is about 70 kms away,
encourage tourists, has also benefited the for major illnesses people
community. There are a number of residential and hospitalised often spend long
mobile clinics which service the area. periods away from their families.
Interaction albeit limited between guests and the
community through excursions to the school at
Ndumu and the sangoma, has resulted in an
exchange of information.
Funds are generated through the lodge owning Only the lodge owning company
company (of which the community owns a 14.5% has distributed dividends to the
share) and the lodge managing company (they community to date.
own a 12.5% share).
The dividends generated through the lodge The way in which money has been
owning company have been paid to the used by the Mathenjwa
Mathenjwa Development Trust. Development Trust which is
basically the Mathenjwa Tribal
Authority has not been sufficiently
accounted for.
Knowledge of the tourism industry through
employees has generated ideas to develop a curio
market and a community campsite for
backpackers.
WS model is being considered for future tourism
partnerships in SDI areas.
The WS initiative has had an impact on the
policies adopted by the Lubombo SDI and
GSLWP Tourist Developments see 1.5
21 local people have permanent jobs at Ndumu
Camp. With an average of 6.69 people per family
in the immediate area, 140 people benefit from the
salaries.
There are opportunities, but few have been
pursued, eg selling curios, furnishings and food to
the lodge.
Ndumu Lodge employs local people for
temporary work such as camp revamping after the
floods earlier this year
.
 28

p) Household income For those with jobs, household income is

increased significantly.
q) Local culture The Sangoma performances in the Park and Potential to over-commercialise.
excursions to the sangoma training school have
become a saleable cultural activity.

Positive impacts and opportunities

As indicated in the tables, a number of benefits have started to emerge which may be attributed to
the tourism initiative, such as improved infrastructure. In particular, community funds have been
used to improve education facilities (Rocktail) while the need to attract tourists has prompted road
development, communications and health programmes. Although not in the immediate vicinity of
either Rocktail or Ndumu, an SDI ‘tourist road’ is under construction from Hluhluwe in the vicinity
of the St. Lucia Wetland to Maputo in Mozambique. The road is designed to improve access into
the region, and will support tour operations. It will also improve mobility and communications, and
will be used to transport products in and out of the region.

The employment policy of recruiting all staff, except for management, from the local area has had a
very positive social impact on the poor. People from the local community who are now employed at
Rocktail Bay and Ndumu have no prior training in tourism or experience with tourists. It appears
that the turnover of staff employed from the local area is lower than one would expect. From
observations elsewhere (e.g. Spenceley 2000) the turnover staff, particularly white, educated staff is
high in the South African safari industry. Typically staff may stay at one lodge for between 9
months and 3 years, before moving on. However, whether it is due to a lack of alternative
employment opportunities or because of strong social ties in the area, evidence suggests that local
people remain in their jobs until they are forced to leave through (e.g. dismissal, transfer or
retirement). This reduces training costs for WS and offers long-term employment prospects to local
people.

The role of women has been enhanced through their employment at the lodges, with 62% of the
local staff of Rocktail Bay and 71% of those at Ndumu being women. These women contribute
significantly towards the financial support of their families and are frequently the sole wage earners.
Women also play a major role within the Community Trusts and, in the case of Rocktail Bay,
constitute almost half of the committee members.

The communities have been exposed to a broader range of livelihood options through interaction
with WS and their participation in the tourism enterprise. Furthermore, the contact has helped create
a stronger partnership between the two and has enhanced mutual understanding. WS proposes to
reinforce this through, for example, a commitment to generate additional benefits for community
members and to familiarise them with tourism operations. A stronger partnership will also lend
greater weight to WS’s efforts to persuade the conservation authority to cooperate with its plans for
much needed product expansion, and therefore make the enterprise more profitable.

Both the Mqobela and Mathenjwa Community Development Trusts developed in direct response to
WS’s tourism concession. The trusts were established to represent the communities in the
partnership arrangement and to manage the financial resources in communities’ interests. The
Development Trust will approach a ward Development Committee regarding project ideas using
Trust money. The committees are voluntary associations which are elected to assist with
development and the introduction of infrastructure in the area.
29

Community projects which fall outside WS’s core activities are also being planned, since both WS
and its community partners feel that the core business is not generating sufficient benefits. In
interviews, both Community Development Trusts suggested several pro-poor projects which were
not specifically related to tourism For example, the Mathenjwa Trust identified the need to assist
small building contractors and commercial agriculture. Financial support for these activities has
been examined with the Land Bank of South Africa, which lends money to emerging commercial
farmers and tourist enterprises linked to agriculture. Various scenarios were discussed where it was
suggested that, in order to streamline lending into rural areas, the Land Bank could make use of
existing financial skills and resources in the tourism sector on an incentive basis. This would mean
that continued financial input could be traded for favourable lending rates to companies such as WS
(Poultney, 1999).

Negative impacts

Perhaps the biggest negative impact is that community expectations have been raised far in excess
of what tourism generally, and one operator in particular, can deliver. Maputaland’s biodiversity
supports a range of activities, from crop farming and animal husbandry to artisinal fisheries and
small commercial enterprise, such as palm wine production. Although tourism creates a market for
these products, it is too small to sustain intensification for commercial production. With the
development of the region as a tourist destination there is an opportunity to streamline many of
these activities to supply a growing tourism market.

3.2.4 Broader contributions to poverty elimination

A key impact of this partnership initiative is the recognition it has given to the poor and local
communities as stakeholders in both tourism development and conservation and natural resource
management. Attempts to reinstate the poor is a major short and long-term contribution to changing
attitudes as well as creating social and economic linkages to the industry. In this way, culture, skills,
knowledge and other assets owned by the poor will start to have a value which they can capture.

3.2.5 Anticipated impacts

If lack of profit forces WS to sell the Maputaland lodges, there would be no guarantee that the same
shareholding arrangements would hold, nor that the community benefits (current and those in the
pipeline) would continue with a new operator. Additionally, within the current crisis and changes in
Nature Conservation Services, a new arrangement might not be as well disposed towards the
community.

Currently there are concerted efforts to:

! improve and diversify the product to attract more tourists into the area, thus making the
partnership more profitable, and;
! increase dividends to the poor other than through their shareholding in the Lodge Owning
and Lodge Operating companies.

There are problems associated with these two efforts, particularly within the Mathenjwa
Development Trust. If dividends do increase, a more equitable system to disburse benefits needs to
be created. This is compounded by the fact that there are close to 21,000 people in the vicinity of the
 30

Ndumu development. Thus, there needs to be greater investment in training and strengthening the
capacity and accountability of local community structures.

What is also critical is that training and broader pro-poor development activities which fall outside
the core activities of the private sector, should be organised simultaneously with tourism
development. This is possible in the case of Wilderness, since its lodges are located within a
regional tourist development initiative, where other stakeholders and agencies could assume this
role. The replicability of the WS initiative in the private sector is only possible, however, within a
large tourist company which can carry any losses until the initiative starts to pay for itself, or in a
destination where government and non- government input can be co-ordinated to support broader
pro-poor strategies.
31

4. Review and Lessons

In sum, and as reflected in the tables, the communities want to achieve more benefits from the
operations than they currently derive. Although WS’s strategy is not explicitly ‘pro-poor’, the
company has been willing to assume the initial business risk and to practice its neighbours policy.
More recently the company has explored ways to increase community benefits and diversify the
product by contracting a consultant and being more proactive. This has opened up communication
and other possibilities.

There are limits, however, to what one company can achieve in contributing to poverty reduction in
a rural area the size of Maputaland, and where the population has increased from 35,000 to 850,000
in less than a decade (Els & Kloppers, 2000). One of the difficulties is the pressure this places on
WS, particularly in Ndumu where all sorts of development demands have been foisted on the
company. These expectations reflect a lack of understanding of what tourism can or should deliver,
and what many government and regional development initiatives are preaching where tourism is
posited as the panacea to poverty. For example, electricity, roads, and water are all required and
desired by the communities, but financing them is outside the capacity of dividends from the
partnership. Funding for such basic services should come from government investment.

However, as this case study has illustrated, tourism has acted as a catalyst for communities to
mobilise for change. The contact between the community and tour operators generates ideas and
opportunities, which quite often fall outside the competence of a private tour operator. For that
reason WS has brought an advisor on board to help manage the demands from communities, from
the conservation authority and from the company itself, to create a more productive operating
arrangement and to help develop the region for the benefit all. However, there is an uneasy alliance
with the conservation authority, KZNNCS, which manages the nature reserves in which the lodges
are located, and which is resistant to WS’s attempts to increase tourism revenue and potential.

The reality is that this is not an easy task. Regional initiatives such as the Lubombo SDI, which
focus on tourism as the principal driver of regional development, need to take this into account.

4.1 Reflections on this PPT initiative

Strengths:
• Good relationship with the community
• Community share in both lodge owning and lodge operating companies
• Equitable pro-poor recruitment strategy
• Lodge staff using initiative to improve local services (e.g. hippo tours; community policing
forum; taxi)
• Eagerness of WS and lodge staff to support improvements for local people and willingness to
carry losses

Weaknesses:
• Although the pro-poor strategies and management initiatives do not appear to be related to the
lack of financial success of the lodges, they suffer from it
• Lodges not located within key tourism destination, and therefore difficult to market
• Inadequate consultation with private sector operator when drawing up shareholding to ensure
that they are financially viable
 32

• Inadequate understanding of shareholding agreements when the KZNNCS and their consultants
drew up shareholding
• Difficult to replicate tri-partite structure if not implemented at project initiation
• Difficult to negotiate a change to the share allocations of companies once implemented
• Dividends from community trusts minimal when compared to the extent of development
required, and the large, dispersed population
• Community dividends from Ndumu accrue to Tribal Authority, a distance from the area
• Poor linkages between local entrepreneurs and lodges
• Lack of regional NGO or independent sector agency to develop business linkages between local
producers and lodges

Opportunities:
• Diversification of produce supplied to lodges by local agriculturists and curio artists
• Potential for local tourism development (e.g. community campsite) to exploit budget tourist
market (so not competing with lodge market) with assistance of WS
• Provision of environmental education to local school children
• Linkages with other lodges in the area to support local community development
• Integration of pro-poor strategies into regional development initiatives (e.g. Lubombo Spatial
Development Initiative) and concession tender criteria
• Multilevel approach at pro-poor intervention

Threats:
• Relationship with conservation authorities hinders potential for tourism to add value through
additional services, and therefore employ more local people
• Lack of profit may lead to sale of lodges, which may threaten future pro-poor strategies
• Insufficient attention paid to integrating pro poor strategy and actions into SDI regional tourism
programme which would frustrate communities and the private sector
• Over- commercialisation and unskilled imitation of authentic traditional ceremonies and
activities (e.g. Sangoma performances)

4.2 Reflections on the PPT research

For this PPT strategy to be effective and replicable, it should be implemented within a broader
policy framework which supports regional development, such as the SDI, or its equivalent.
Although the Lubombo SDI is a fairly recent initiative and is preceded by WS operations in the
region, WS’s efforts provide a valuable starting point from which to develop the strategy. WS’s
commitment and its ability to carry losses cannot be replicated by smaller individual operators. For
this reason it is incumbent on the government, para-statals and the numerous consulting agencies to
coordinate and integrate their pro-poor efforts in the region.

A regional initiative such as the SDI has the capacity to formulate policy and act on it. For example,
with the recent designation of GSLWP as a World Heritage Site, a new local authority has been
created where the executive powers have been delegated to the conservation services but within a
larger Heritage Authority which draws on a broader and more representative constituency. Thus, a
multilevel approach to pro-poor interventions which operate locally, nationally and internationally is
also desired. This includes practical local initiatives, supportive national policies, and, at the
international level, marketing, lobbying, influencing international dialogue etc, to encourage
responsible business and consumer behaviour.
33

The design of the community’s share allocation within the Lodge Owning and Operating
Companies, and the subsequent distribution of funds to affected communities, are also critical to the
success of the pro-poor initiative. A major constraint for communities neighbouring Ndumu Game
Reserve is that the financial benefits from the Trust have been distributed to the Tribal Authority
who are located far from the lodge and reserve. The benefits of the revenue, therefore, have not been
invested in facilities for the area immediately affected by the lodge. In addition, with such a large,
dispersed population living in poverty, it is impossible for one lodge to significantly impact on the
living conditions of all. One tour operator alone cannot be expected to solve the problems of
regional poverty, without the support of government and other authorities.

From the research, the authors recommend that ODI make representation to the Lubombo SDI in
support of integrating a PPT component into the qualifying criteria for the allocation of concession
in the GSLWP. This could mark the beginning of a process of integrating PPT into the overall SDI,
and into the criteria for concessions over a larger area, to include Swaziland and Mozambique.

On a more immediate level, a real opportunity exists for maximising linkages with other
communities in the region and, in particular, with those linked to developments such as the WS
initiative, through a shareholding or some other arrangement. The supply of goods and services that
are imported into the area can be organised in the region and sold at competitive prices. This would
require resources and support to local community-based projects such as Mboza Village Project, the
WS partner Trusts and other community structures.

One example here would be the Sangoma Training School, which provides a unique cultural
excursion to guests on a commercial basis. Obviously a balance needs to be achieved to avoid over-
commercialising a cultural asset which may alter or destroy it. These smaller initiatives could
provide a very practical base from which practical PPT actions can be introduced into the broader
regional tourist destination.

Another opportunity to strengthen linkages would be for community projects to set up manageable
tourist amenities in the communal areas such as Rocktail Bay and the areas abutting Ndumu, where
backpackers could be accommodated. If properly zoned and organised to avoid interference with the
core business aimed at the upper end of the market, tourism could derive additional benefits for the
poor with assistance from WS and its experience in the industry. This market niche could then be
expanded through the SDI as part of the PPT strategy.
 34

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KwaZulu Natal Tourism Authority & Durban Metro Council, August 2000,
http://stage.kzn.org.za/invest/Domark20002html/part1.htm, 27 November 2000.
Seymour, J. (2000b) KwaZulu-Natal’s International Tourism Market, January and September 1998,
KwaZulu Natal Tourism Authority & Durban Metro Council, August 2000,
http://stage.kzn.org.za, 27 November 2000.
Spenceley, A. (2000) Sustainable Nature-Based Tourism Assessment: Ngala Private Game Reserve.
Unpublished report to Ngala Private Game Reserve.
Wilderness Safaris Africa (2000/1). Conservation Principles and the Wilderness Trust. Our Work
with Neighbouring Communities.
35

Annex 1: Methodology

The data collection was undertaken by two researchers during November and December 2000. One
of the researchers has extensive experience with the communities and WS and was able to draw on
historical knowledge to support the information collected.

Semi-structured interviews were conducted with representative members of staff from each
department within each lodge and with management. The Sangoma who ran the training school was
also interviewed. A meeting was held with each of the Community Trusts, which were attended by
the Induna and representatives of the Community Development Committees. Interviews were also
held with members of KZNNCS, KZNTA (KwaZulu Natal Tourism Authority), staff at WS, the
South African Police Services the KZN Regional Health Authority, teachers and principals of
neighbouring schools, and managers of the local Boxer Supertrade Stores.

Literature sources were pooled from the South African government website, the media, KZNNCS,
and Wilderness Safaris.

Annex 2 Types of tourists (international, domestic, regional)

Of all international tourists visiting S. Africa in 1998, 40% visited KZN, mostly from the UK,
Germany, Africa (especially Zimbabwe), the USA, France and the Netherlands. The majority of
these visitors (60%) were on holiday, 70% of whom were independent while around 30% were on
organised holidays. They reportedly spend an average of around ZAR 4,000 each while within the
province (Seymour, 2000b).

The majority of domestic tourists within South Africa fall into LSM (Living Standard
Measurement) 7 & 83, and KwaZulu-Natal (KZN) is reportedly the most visited province with 44%
of the market share. Most of the domestic tourists to the province are from KZN (34%) or from
Gauteng (35.8%) which includes Johannesburg and Pretoria. The majority of LSM 1-6 visitors do
so to visit friends and relatives (63.7%) while the majority of LSM 7-8 tourists go on holiday
(46.3%) (Seymour, 2000a). Almost 71% of domestic tourists visiting Maputaland do so for
holidays, and most people visiting the province are self catering (49.7%) or visiting friends and
relatives (16.1%) (KZN, 1998).

Is tourism growing or declining?

International tourism in KwaZulu-Natal is growing, while domestic tourism appears to be in decline

as a result of the weakening economy and fears of malaria, personal safety and travel (Pers. comm.
James Seymour, KZNTA, 2000).

3
LSM is the South African socio-economic measurement of living standards, with 7 and 8 representing the highest income brackets,
and 1 and 2 the lowest.
 36

Annex 3 Policy context in which the initiative is taking place

This annex illustrates the growing importance of tourism to South Africa in general, and KZN in
particular. It provides details of a range of policies, institutions and initiatives established by
national and provincial governments and the resources that are being invested to boost the sector.

National and provincial governments are committed to tourism development in the area, particularly
through the Lubombo SDI (Pers. comm, James Seymour, KZTA, 2000). This is illustrated in an
excerpt from “A Strategy for Tourism in KwaZulu-Natal (2000)” below.

Box 2: Extract from “A Strategy for Tourism in KwaZulu-Natal (2000)”

Tourism is widely regarded in all spheres of government and throughout the private sector as holding
significant potential to deliver economic growth and employment in the country.

National approaches to tourism development are framed in terms of the National Government White Paper
on Tourism (1996) and the Tourism in GEAR development strategy (1997), which indicate that tourism
should be led by government and driven by the private sector, and should be community-based and labour
conscious.

The ‘Institutional Guidelines for Public Sector Tourism Development and Promotion in South Africa
(1999)'’set clear policy and strategic guidelines concerning the future direction and development
framework for tourism. It provides a general framework for co-operative government as this pertains to
tourism development and promotion, and the broad differentiation of roles between national, provincial and
local spheres in respect of:

• Tourism legislation • Training

• International relations and agreements • Incentives/investment/financing programmes
• International tourism marketing / promotion • Information management
• National (domestic) tourism marketing • Domestic tourist information dissemination
• Provision of tourism infrastructure • Tourist guiding
• Tourism standards • Tourism development
• Tourism awareness • Safety and security

The KZN Tourism Act of 1996 sets out how the KZN Tourism Authority (KZNTA) would be set up
to develop, promote and market tourism within the framework of government policy (KZNTA,
1996). The KZNTA has since created a strategy for developing tourism in the province which
includes international and domestic marketing and aims to position the province as a globally
competitive tourist destination (KZNTA, 2000). In November 2000, SATOUR (South African
Tourism) launched a phase of its international marketing campaign at the World Travel Market in
London, with its largest global investment to date of SAR 400 million ($51 million) over two years
(SATOUR, 2000).

The South African Tourism Action Plan was launched in September 1999 following a public-
private partnership between government and the tourism industry assigned with the task of
formulating an integrated strategic tourism marketing campaign for South Africa. The SAR 180-
million budget, the largest budget for international tourism marketing since SATOUR's inception in
1947, comprises

• SAR 50 million from government

• SAR 45 million from the fixed costs and marketing spend of SATOUR (the international
tourism marketing arm of government)
37

• SAR 50 million from the Business Trust

• SAR 25 million from the Tourism Business Council through the collection of a voluntary levy
and
• SAR 10 million from SAA

The Tourism Action Plan focuses on two major activities. In the short term it will run marketing
campaigns (above the line, below the line and co-operative marketing campaigns) mainly in the
traditional Big Six markets (UK, USA, Germany, Italy, Netherlands and France) to increase South
Africa's market share of international tourists. In the medium and longer-term, comprehensive
information will be gathered on the international tourist market. This will assist South Africa’s
strategic marketing campaigns to attract not only the much needed high-spending tourists, but also
those from emerging markets in Asia, the Middle East and the rest of Africa (DEA&T, 2000e).

In October 2000, SAR 15.7 million (approx US$ 2 m) was received by the Department of
Environmental Affairs and Tourism (DEA&T) from the Spanish government to fund a new South
African Tourism Institute (SATI), which will spearhead tourism education and skills training. SATI
will specifically focus on upgrading the skills of teachers, trainers and assessors within the tourism
industry. It will be used as a vehicle to fast-track tourism training programmes at various levels. The
first part of the initiative will be introduced at school level by way of a specifically developed
knowledge and skills transfer programme aimed at schoolteachers. A further training programme
will be implemented to develop the skills of approximately 3,000 on-the-job trainers and assessors
currently working within tourism. A budget of SAR 1.5 million (US$ 191,083) has been set aside
for worthy tourism projects in need of special assistance, while a tourism bursary fund will also be
established (DEA&T, 2000c).

The context of the initiative consists of a mixture of planning frameworks (e.g. Strategic
Development Initiatives (SDIs); Biosphere Reserves; and Transfrontier Conservation Areas
(TFCAs). Since its initiation, the Lubombo SDI has achieved the following (DEA&T, 2000d):

• The upgrade of the N2 from Richards Bay to the Swaziland border;

• The construction of the Hluhluwe to Maputo road of which 68 percent was carried out by
done by SMMEs and will provide 70,000 people with all weather access;
• The provision of 11 key access roads serving 160,000 people;
• The building of a new border post with Mozambique;
• A SAR 40 million (US$ 5 million) malaria control programme;
• A SAR 2.8 million (US$ 356,688) crafts programme to build capacity and give marketing
support to 2,000 crafters;
• The St Lucia Millennium festival and four other satellite festivals in which 18 countries
participated;
• The development of a SAR 1.2 million (US$ 152,866)heritage route and marketing
programme with regional tourism stakeholders;
• The Greater St Lucia Wetlands Park was declared a World Heritage Site in 1999;
• A SAR 42 million (US$ 5.5 million) tourism infrastructure programme, which will include
the re-introduction of game, is taking place in the southern section of the park;
• The removal of 5,000 hectares of commercial forests on St Lucia Lake's western shores and
its inclusion into the park, has been negotiated, and
• Land claim settlements on the eastern shores have been settled.

The next phase of the SDI project is to market SAR 1 billion worth of investment sites in the three
countries and to establish the Greater St Lucia Wetlands Park Authority in terms of the World
 38

Heritage Act of 1999. At present the area attracts 500,000 tourists and provides 11,200 beds of
which most are white and government owned. Through the intervention of the Lubombo SDI and
the establishment of the greater St Lucia Wetland Park Authority the plan is to kick-start the
economy of the sub-region over a 10-year period. By 2010 projections are for an increase in tourist
numbers to 1.4 million, the bed numbers to 18,700 and foreign currency earnings to SAR 850
million a year. With careful conservation and resource management it is predicted that the LSDI
will create 9000 jobs during infrastructure construction which, with private sector investment, is
estimated to create 4,000 permanent jobs (DEA&T, 2000d).

On a wider scale, the Lubombo Transfrontier Conservation Area agreement was signed between
Swaziland, Mozambique, and South Africa on 22 June 2000 at the World Economic Summit in
Durban. The establishment of the Lubombo TFCA supports the broader aims of socio-economic
development in the Southern Africa sub-continent, as well as improving regional ecosystems
management.

The major TFCA objectives are:

• economic development through appropriate maximum use of opportunities presented by the
three countries’ natural assets;
• ecological and financially sustainable development, the sustainable use of the natural
resource base and the maintenance of ecosystem function through holistic and integrated
environmental planning and management;
• the development of joint strategies for trans-frontier ecological planning and resource
management.

The detailed protocol signed by the ministers includes an extensive list of objectives as well as clear
undertakings by the parties, and establishes a TFCA Conservation and Resource Area Commission.

Four specific areas targeted in the protocol are:

1. The Lubombo Ponto do Ouro-Kosi Bay Marine and coastal area on the Mozambique-South
African borders
2. The Ndumu-Tembe-Futi elephant reserves on the border of Mozambique
3. The Nsubane-Pongolo (Josini) area on the border with Swaziland and
4. The Lubombo Conservancy- Hlane-Mlawula/Goba area on the border of Mozambique and
Swaziland.

At the signing, the Minister of Environmental Affairs and Tourism, Mr Moosa said,

“The involvement of communities in and adjacent to the Lubombo TFCA, through

consultation, representation and participation in the management of the TFCA, is
critical for the success of this initiative. . . . .The protocol will form a basis for a
deliberate identification of opportunities to broaden ownership patterns in the TFCA
through encouragement of local small businesses, of community-owned ventures, and
joint ventures with domestic and global investors” (DEA&T, 2000d).

In total, projects totalling ZAR 530,000,000 are being facilitated by the LSDI in conjunction with
lead agencies and partners, including the KwaZulu-Natal Tourism Authority, the Uthungulu
Regional Council and the KwaZulu-Natal Economic Council (KZNTA, 2000b).
39

Annex 4 Pro-poor government policies with respect to tourism

The Tourism Enterprise Programme (TEP) was launched on 21 November 2000 and identifies
enterprise development as one of the key instruments in the transformation of the tourism industry.

The TEP is designed to increase the economic participation of previously disadvantaged people and
communities within the tourism sector. It will do this by identifying and developing partnerships
and synergies between emerging business, community business entities and corporate businesses. It
will also provide business skills training and capacity building for emerging enterprises. This
intervention will result in about 4,000 enterprises benefiting from the scheme over a period of four
years, with transactions estimated at SAR 450 million. The government states that the business
sector is committed to the development of South Africa and its people, and is fighting along side
government in its attack on poverty (DEA&T, 2000a).

Two initiatives currently supported by the Department of Environmental Affairs and Tourism with
an emphasis on job creation within KZN are the Cultural Heritage Tourism Project and the
Umvuma Community Project, with an investment of ZAR 1.42 million. The first of these aims to
identify opportunities for coastal cultural and heritage tourism development, and to develop a site as
a model project. The second is for the development of a full community-owned hiking trail and
accommodation in Kosi Bay. This has links with the Lubombo SDI and KZNNCS (DEA&T,
2000b).

Both Uthungulu and Zululand Regional Councils dedicate significant funds and resources to
tourism (Pers. comm., James Seymour, KZTA, 2000)

Organisations which are influential in the area with respect to tourism development include:

• KwaZulu-Natal Tourism Authority

• KwaZulu-Natal Nature Conservation Services
• Lubombo Spatial Development Initiative
• The Department of Environmental Affairs and Tourism
• South African Tourism (SATOUR)
 40

Annex 5 Example of a community-based project – Kosi Bay

A community-based tourism project started some kilometres up the coast at Kosi Bay at the end of
1989, when anti-apartheid activist David Webster was assassinated. The confusion and conflict
generated through community meddling in tourism management and, conversely tourism
management dabbling in community affairs, resulted in the demise of the whole project. Although
the project was a response to the forced removal of people by the previous government and
conservation authority from the land they had occupied for 700 years, the project became
economically feasible realising occupancies of 70% in 1996.

Training and other support systems were introduced and the only import was a management training
team who were there for 3 months, and a manager who worked under difficult circumstances with
the community for 2 years. Often management decisions were overturned by members of the
community for personal reasons, but under the guise of community participation, which made the
running of the camp unworkable. On the other hand the manager, who was paid by an NGO, was
also under pressure from a potential investor who was supporting him to get involved in community
affairs in return for trying to secure a partnership with the community to develop Webster’s and two
other sites.

More recently, a series of potential partners have run the camp for a while and then left, and various
organisations and individuals have submitted proposals for the camp. This has included
environmental groups and even farmers vying for favours of the ‘community’. However, the
community is not a homogenous coherent group. Through allegedly corrupt practises the latest
camp manager, a builder, has improved the camp amenities and is running the camp with
permission from the local tribal authority headman. The development has been opposed by members
of the community, however. In addition, the KZNNCS has instituted a supreme court interdict
against the manager for illegal occupation of a designated area without bona fide membership of the
local Tembe community, who after a protracted land dispute continue to live in the coastal forest
reserve. [Assessment done by C. Poultney for David Webster Trust]. Various legal actions have
been instituted as the camp is in the coastal forest reserve, under the jurisdiction of the conservation
authority but where people also reside. Since there is no comprehensive cooperation between the
KZNNCS and community structures, the new camp manager has had a fairly good innings with a
couple of substantial tourist structures to boot for the fishermen who patronise his camp.
41

Annex 6 Comments on the research

Although the PPT research methodology was clear and explicitly described, it was not possible to
collect adequate data on some issues during the available timeframe. Time and financial constraints
meant that many interesting avenues were not researched. For example, it would be very interesting
to investigate further the secondary spending of staff and local entrepreneurs within the community
to determine the level of revenue leakage. This would enable strategies to be designed to capture
locally more of the tourist spending.

It also would have been useful to have spent more time investigating the extent of poverty in the
area, and alternative sources of income exploited by community members not working at the lodges.
This would have allowed a more accurate evaluation of the benefits provided by the lodges.

A critical area of investigation which could also have benefited from more attention was the
environmental and financial sustainability of the initiative, and consequently, the long-term
prospects for pro-poor tourism.

The use of two researchers on the project – one who was intimately involved with the company and
the communities, and the other who was not, worked well. The mixture of in-house knowledge and
independence permitted a thorough investigation and evaluation of the pro-poor initiative.
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Annex 7 Maps of region

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